More work to do on generating a productivity dividend from new IT systems implementation

Woolworths $1.2 billion loss

For Woolworths 2016 financial year the group reported a AUD $1.2 billion loss after AUD $2.6 billion worth of writedowns.

Reflecting on the results, Chief Executive Officer of Woolworths, Brad Banducci, said the 2016 financial year was one of unprecedented change for Woolworths.

“We are seeing early signs of progress as we work to restore our competiveness and improve our culture in Australian Food. We have also addressed significant issues facing the Group with the decision to exit Home Improvement and decisive action taken on BIGW to reposition the business,” Banducci said.

Woolworths supermarket performance

Australian supermarket sales for the year were AUD $34.8 billion, a decrease of 0.2 per cent on the previous financial year.

Woolworths however said that its customers were noticing improvements in supermarkets with its ‘Voice of Customer’ satisfaction score improving to record levels.

Across the financial year, Woolworths said it continued to lower prices, investing AUD $500 million in doing so (including stopping price rises).

Petrol

Petrol sales for Woolworths reached AUD $4.6 billion, a decrease of 18.1 per cent when compared to the prior 12 months.

Woolworths attributed the drop to changes in its alliance with Caltex and declining average fuel sell prices.

Liquor

Woolworths’ liquor stores, including Dan Murphys and BWS, performed well increasing sales by 4.7 percent on the prior 12 months to AUD $7, 589 million.

“We are committed to strengthening our leading position in Drinks,” said CEO Brad Banducci.

Masters and Home Timber and Hardware

Woolworths used the financial results update to announce all Masters stores will be closing prior to 11 December 2016.

Masters sales for the financial year were AUD $1.1 billion, an increase of AUD $21.8 per cent on Woolworths’ 2015 financial year.

Home Timber and Hardware, recently acquired by Metcash, had AUD $967 million in sales for the year, a 3.2 per cent increase on the prior 12 months.